Although optical networking components maker Oplink Communications, Inc. (NASDAQ:OPLK) reported a loss in its fourth quarter compared with profits in the same period a year earlier, the company still raised its outlook for the rest of the year, helping its small cap stock rise.
According to RTTNews, the company stated the losses were incurred due to a non-recurring deferred tax asset charge. When adjusted for this expense, earnings actually rose above Wall Street estimates. But what prompted investors to buy the stock was likely the company's outlook for the coming first fiscal quarter, which beat what analysts expected.
Total revenue for the fourth fiscal quarter amounted to $44.25 million, compared with $43.67 million reported in the same quarter last year. Excluding the one-time charge, earnings amounted to $3.8 million for the quarter, or 19 cents per share. The average estimate of analysts polled by Reuters found expected earnings to be 12 cents per share. Moving forward, Oplink expects to drive revenues of as much as $46 million, or 14 cents per share.
By 2:35 pm on August 17, Oplink shares had risen 14.4 percent to $16.32.